Think Twice Before Buying a Diamond Ring on Valentine's Day

Share

Diamond may be of eternal value, but its valuation actually gets affected by the stories people attach to it, shows a new research conducted at University of Toronto.

Think Twice Before Buying a Diamond Ring on Valentine's Day

Advertisement

Diamond rings disclosed to be associated with divorce and other failed relationships are sold at lower prices than rings without a negative history, the study into the re-sale of diamond engagement rings has revealed.

‘Diamond solitaire engagement rings with no disclosed negative history were most likely to sell and at a higher price.’

Advertisement

That suggests previous academic research that claimed a single, clearly-defined market category is associated with a product's success, is not the whole story, said the study's researcher Anne Bowers, associate professor at Rotman School of Management University of Toronto in Canada.

The assumption there is that consumer expectations are fully met when an item cleanly fits into a category. "In some sense, these findings are the exact opposite," Bowers noted. "Here's a product that technically speaking, fits exactly the criteria for an engagement ring, and yet you still have problems," Bowers said. Two parts to the study revealed similar findings.

Analysis of data from 1.5 million eBay listings of diamond solitaire engagement rings over a 13-month period showed rings with no disclosed negative history were most likely to sell and at a higher price. Rings where sellers disclosed a divorce or other failed relationship -- marked by comments such as "not going to happen," or "right ring wrong guy" -- were less successful.

A separate attitudinal survey showed that even though participants believed a diamond ring from a divorce was most likely to be authentic -- compared to the same one from a happy marriage or a jewellery store -- it was the opposite when it came to how much they' would be willing to pay for it. The study was published in the journal Advances in Strategic Management.

Your comments are automatically posted once they are submitted. All comments are however constantly reviewed for spam and irrelevant material (such as product or personal advertisements, email addresses, telephone numbers and website address). Such insertions do not conform to our policy and 'Terms of Use' and are either deleted or edited and republished.Please keep your comments brief and relevant.This section may also have questions seeking help. If you have the information you are welcome to respond, but please ensure that the information so provided is genuine and not misleading.

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment.Full Disclaimer